Fuel shortages put essential activities at risk and worsen the country's economic situation: ACP

The Colombian Association of Oil and Gas (ACP) wishes to alert about the situation of liquid fuel shortages in several areas of the national territory, which has lasted more than 15 days, and which puts essential activities at risk and exacerbates the already difficult economic situation of the country.

• The distribution of liquid fuels is a public service. The shortages currently experienced in several regions of the country affect all Colombians.
• The lower sale of fuels has impacted tax collection by nearly $58 billion, further affecting the current fiscal situation of the country.
• Violent acts against supply terminals and service stations put the lives of workers and communities at risk.

Colombia faces a complex economic and fiscal situation, exacerbated by the pandemic; in this context, the impact of blockades, vandalism, and the shortage of liquid fuels, exceeding 30% (40 million gallons of diesel), affects all Colombians every day, especially in the departments of Cauca, Nariño, and Valle del Cauca.

The lower sale of fuels has impacted national and regional revenue. As of May 12, losses are expected to reach $32 billion pesos less in national taxes (VAT, National gasoline tax, and carbon tax) and $26 billion less in surcharges for the regions. This is happening at a time of fiscal tightness where there is an urgent need for more resources. 

Service Stations (EDS) have also stopped receiving income of about $340 billion pesos. Additionally, vandalism has destroyed nearly 120 service stations, and attacks on fuel terminals like those that occurred this weekend in Yumbo (Valle del Cauca) have put the lives of workers and communities at risk and have affected many families whose livelihood depends on these businesses.

The most affected regions are in southwestern Colombia, where there has been a shortage of 20 million gallons; 97 EDS vandalized and losses for the region of $12 billion due to lower surcharge collection. The Center and the Eastern Plains have experienced a shortage of 10 million gallons; 12 EDS vandalized and losses of $7 billion pesos due to lower surcharge collection.

“The distribution of liquid fuels is a public service, as determined by Colombian law, being essential for the transportation of food, agricultural and medical supplies, as well as the mobility of workers and health personnel throughout the national territory. It is essential now more than ever to restore the conditions for a secure supply,” stated the president of the ACP, Francisco José Lloreda Mera.

In this regard, the ACP calls for the restoration of public order and the cessation of violence and vandalism that threaten lives, affect all Colombians, and worsen the economic and social situation of the country.